Nearly 10,000 independent U.S. craft breweries are grappling with unprecedented challenges after former President Donald Trump's 2024 decision to raise tariffs on foreign aluminum and steel imports to 50%. Small operators, which rely heavily on overseas suppliers for materials and equipment, now face existential threats as production costs soar.
"We're seeing delays, price hikes, and supply chain chaos," said a Washington, D.C.-based brewery owner who requested anonymity. "Many of us can't absorb these costs without raising prices – but that risks alienating loyal customers."
The tariffs come at a precarious time for the $29 billion craft beer industry, which contributes 4% of total U.S. food and beverage manufacturing jobs. Industry analysts warn that smaller breweries lacking bulk purchasing power may face consolidation or closure within 18 months.
While multinational beverage corporations navigate the tariffs through global supply networks, craft brewers' localized operations leave them particularly exposed. The situation highlights broader tensions in U.S. trade policy and its unintended consequences for domestic small businesses.
